Which of the Following Is True Regarding the Cash Flows

question 120

Multiple Choice

Which of the following is true regarding the cash flows of a firm?

• A) Depreciation increases the cash flows of a firm.
• B) The payment of a loan repayment to a bank is a cash outflow for the firm.
• C) The sale of new shares of stocks increases the financing cash flows
• D) Operating cash flow equals net income plus depreciation
• E) All of the above.

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Definitions:

Positive Correlation

A relationship between two variables where both variables move in the same direction.

Average Income

A measure of the central tendency of income distribution of a population, calculated by dividing the total income of the population by the number of people in that population.

Dental Disease

Refers to conditions affecting the teeth and gums, such as cavities, gum disease, and oral cancer.

Representative Sample

A subset of a population that accurately reflects the members of the entire population, used in statistics and research to draw conclusions about the population.